How to Create and Apply Rounding Relations?

How to Create and Apply Rounding Relations?

Rounding relations is a tool in the Financial Reporting template. It is used to correct rounding differences in the financial statements. 

Specifically, a rounding relation compares two balances in the accounts ('Cell 1' and 'Cell 2'), and if there is a difference plugs this to a cell ('Cell 3'). 
 
Note: One relation is required for each financial statement column (i.e. current year, prior year). 

For example, if the trial balance contains decimal places, each balance in the financial statements is automatically rounded to the nearest dollar. As a result, the balance sheet may not balance. This may also occur if you choose to display the financial statements in thousands or millions of dollars.
 
As the balance sheet is a common statement where rounding differences can occur, pre-set rounding relations are included in the Financial Reporting Template. By default, these relations work as follows:
Cell 1 - Net Assets
Cell 2 - Total Equity
Cell 3 - Trade and Other Payables (current)
 

    • Related Articles

    • How do I apply rounding to the financial statements?

      How do I apply rounding to the financial statements? The financial statements are able to be rounded to the following: Ones (default setting) Thousands Millions Billions All mapped account balances throughout the financial statements will ...

    • Create New File and Import Data (update method 2)

      The conventional method of updating an engagement file to the new version of the template follows the Staff Update Guide (“update method 1”).   However, there is another method available when the standard year-end close and roll forward is not an ...

    • How to create a new director details table

      To create a new director detail table complete the following steps: Click the + Add section below an existing director detail table and select Text section. This will insert a new text placeholder to the selected location. Click within any existing ...

    • How to create a Combined Audit and Financials Engagement File?

      To create a combined Audit and Financial Engagement File, follow the steps below. Prerequisites: A combined file can only be created if both the Audit Systems and Financial IFRS templates are installed. Audit Systems Template Financials IFRS Template ...

    • How do I create a 'Micro Audit' engagement with Financials?

      The Micro Audit Profile is the only audit profile that does not copy across the Financial Statements upon creating a new engagement file. The reason for this is due to the Simplified Mapping that is used in the Micro Audit Profile. The Simplified ...